§ 24. Mr. Powellasked the Secretary of State for Defence what is the ceiling price which he has agreed with the United State Government for the modifications required by the Royal Air Force to the F111 aircraft.
§ Mr. HealeyI advised the right hon. Gentleman and the House on 1st May, 1967, that agreement would be reached on the supplemental ceiling price for the special British modifications "in the next month or so". I have nothing to add to this. Negotiations are still going on and the House will be advised of the outcome as soon as they are finished.—[Vol. 746, c. 126–7.]
§ Mr. PowellWhy is it proving so difficult to get agreement on this?
§ Mr. HealeyThe problem is not the difficulty of our getting agreement with the United States Government. Extremely complex negotiations have to be undertaken between the United States Government and the large number of firms which are concerned in producing these changes and amendments. If the right hon. Gentleman will look back at the history of any aircraft project in this or any other country he will see what a complicated business it is getting final agreement on the last detail in such a matter.
§ Mr. Maxwell-HyslopCan the right hon. Gentleman tell the House why the contract does not also cover a fixed price for aircraft that replace any lost in combat or in training? This could prove a great leak in the sale.
§ Mr. HealeyBecause the requirement of 50 aircraft which we have identified and propose to meet under the terms of the F111 arrangement takes into account what we think will be the natural wastage.
§ Mr. DalyellDoes the Minister accept Mr. McNamara's figure of 3.7 million dollars for the airframe alone, in the event of Britain's wanting to buy more F111s.
§ Mr. HealeyI have made it clear that I have no intention of buying more F111s.